KOTA KINABALU (Nov 30): Borneo will be the future growth centre with the relocation of Indonesia’s new capital city to Nusantara in east Kalimantan, said Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
Phoong who is the first minister from Sabah to visit Nusantaran on November 28, said the world’s third largest island will also become the most important development centre in the whole east Asean.
“The distance between Nusantara and Kota Kinabalu is nearer (around 800km) compared from Kota Kinabalu to Kuching (over 1,000km) or Kuala Lumpur.
“This becomes more interesting. The capital of Sabah is nearer to the new capital city of Indonesia than the capital of Malaysia,” he said in a jest at a briefing on the development of Nusantara on November 28.
He said this would generate trade, investment and construction opportunities in Sabah and East Kalimantan.
“The visit to Nusantara allows us to see for ourselves the opportunities available there.
“I feel very positive. When Indonesian President Jokowi (Joko Widodo) proposed the idea of relocating the capital of Indonesia to Kalimantan seven years ago, the whole world is starting to shift. If we look at South East Asia, the focus of development is in Bangkok, Singapore and Kuala Lumpur. Because of the relocation of the capital to Nusantara, Malaysia has to consider a lot of development from the west to the east. This new capital will bring vast potential opportunities,” said the minister.
Nusantara is now open to visitors and Phoong was the first minister from Sabah invited by the Indonesian Consulate General in Kota Kinabalu to visit the capital with a group of entrepreneurs led by Sabah China Chamber of Commerce (SCCC) president Datuk Frankie Liew.
Phoong disclosed that Sabah is now constructing a highway from Serudong, Tawau to the border of Indonesia. The federal government is also giving priority to building an Immigration, Customs, Quarantine, and Security (CIQS).
“When the highway is completed it will bring a lot of economic benefits and opportunities to the whole region, especially east and west Kalimantan and east part of Sabah.
“This is the most important development for the entire Borneo.
“To build Nusantara is equivalent to build Sabah.
The success of Nusantara means Sabah will also be a success,” he noted.
“We want to bring more resources and opportunities to this part of the region.
“I believe Borneo will be a big name in the year to come,” he added.
Phoong also witnessed the signing of a memorandum of understanding (MoU) between SCCC and Kamar Dagang dan Industri (Kadin) Kalimantan Timur yesterday.
The MoU aims to strengthen mutual cooperation to enhance and promote bilateral trade and relations between Sabah, Malaysia and East Kalimantan, Indonesia, and to advance the economic growth and development of both countries.
In his speech at the signing ceremony, Phoong also called on entrepreneurs in Sabah and East Kalimantan to jointly develop Borneo to make it a growth centre for the region.
He said President Jokowi’s decision to relocate the capital is a very visionary move and it has started to bear fruits.
“We have five provinces in Kalimantan, two Malaysian states and the country of Brunei in Borneo. If these eight regions can work closely together and cooperate in investment, trade, tourism and infrastructure development, Borneo will become the world’s growth centre for the entire region,” he said.
The minister also called on entrepreneurs in East Kalimantan to take advantage of Kota Kinabalu’s connectivity to other parts of the region.
Sabah is located at the north of Borneo and nearer to more developed countries like Hong Kong, Japan and Korea.
“We have the connectivity and should use this strategic location together. For example, Kota Kinabalu International Airport (KKIA) is the second busiest airport in Malaysia and connects to many countries.
“It will allow the people in East Kalimantan to connect to the rest of the world via KKIA,” he said.
Phoong concluded that Sabah and East Kalimantan must work together to enhance cooperation.
“The rise of Borneo will benefit Sabah and East Kalimantan,” he said.
Phoong and the Sabah delegation also visited the PT Kilang Pertamina Internasional Refinery Unit V Balikpapan on November 29.
Accompanying Phoong were Frankie and Rafail Walangitan, the Consul General of Indonesian Consulate in Kota Kinabalu.
Jokowi announced the plan to move the capital to East Kalimantan in 2019, to reduce the burden on Jakarta and foster growth in less-developed areas of Indonesia.
Envisioned as a “smart” and “green” city, Nusantara will serve as a model for sustainable urban development. Its development is divided into five stages from 2022 until 2045. The first phase of development (2022-2024) was to cover the construction of basic infrastructure, the core government area including the State Palace, parliament building, strategic ministry offices; and residential complexes for 500,000 civil servants and other residents.
Currently, only the Presidential Palace and several pavilions for high-ranking state officials have been built in the core government area, while other buildings are still under construction.
